8:11 am, September 18, 2022
The future of Tesla’s half-finished Berlin gigafactory looks uncertain after the firm stopped work on the project months after boss Elon Musk described it as a ‘gigantic money furnace’.
The world’s richest man made the comments back in June and serious doubts have now emerged about the long-term viability of the project.
The Times reports that the EV firm has halted work on the plan, amid intense speculation that the development could be moved across the Atlantic to the US.
The plant, which opened at a reduced capacity in March, is largely being funded by €1bn in state aid from the German government.
Once completed, the site is due to be the world’s largest gigafactory but it now appears unclear whether that will ever be the case.
Building work has been suspended with a 100 hectare expansion into Brandenburg Forest put on ice.
It is believed that Musk is giving serious consideration to a move stateside in order to benefit from a generous subsidy regime.
As part of America’s new $750bn Inflation Reduction Act, those buying an EV can claim up to $7,500 in tax credits if a car has at least 50 per cent of its battery components ‘made or assembled’ in North America.
Another factor believed to be behind the latest move is an apparently tense relationship with its German workforce.
Earlier in the year, Tesla was criticised by Unions, who said the firm was struggling to recruit qualified workers as they were offering lower salaries than rival firms.
